Amazon's CEO Andy Jassy conveyed the potential for significant revenue generation through ads integrated into the new AI-powered assistant, Alexa+. With millions of users since its launch, Alexa+ is positioned as a more advanced version of the original Alexa. Historically, Alexa has been ad-free and has struggled to monetize effectively for over a decade. In response to such challenges, Amazon considers an ad-supported model for Alexa+ to transform its operational losses into financial gains, paralleling trends from Google and OpenAI's ad strategies in AI.
I think over time, there will be opportunities, you know, as people are engaging in more multi-turn conversations to have advertising play a role - to help people find discovery and also as a lever to drive revenue.
Alexa+ is designed to be more conversational, context-aware, and AI-driven. It can help you plan your date night, entertain your kids, and even dabble in basic image and video generation - all under the banner of your $14.99/month Prime subscription.
Ad-supported Alexa+ could be Amazon's attempt to finally turn its once-money-burning smart assistant into a revenue machine, without hiking the subscription fees.
Both Google and OpenAI have explored ad integration in their AI products as a way to generate revenue. OpenAI CEO Sam Altman, in particular, has made a notable pivot: once firmly against advertising in his chatbot, he's since reversed course.
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